Hemp Inc (OTCMKTS:HEMP) continues to appear (I stress the word appear) to be making progress and just recently released a long press release, which I will detail below. I am extremely skeptical of this stock and it is important for investors to remember management’s track record and CEO Bruce Perlowin’s ongoing investigation by the SEC for defrauding investors.
A year ago, the SEC charged Hemp Inc, Bruce Perlowin, and others with a “long-running and profitable scheme resulted in the sale of hundreds of millions of unregistered and purportedly unrestricted Hemp shares to public investors. The execution of this scheme involved, among other things, purported gifts and consulting agreements that do not appear to have been bona fide and fraudulent statements made to Commission-registered broker-dealers.”
Hemp Inc (OTCMKTS:HEMP), according to company materials, is a holding company with a number of subsidiaries operating in the industrial hemp sector as well as the legal cannabis industry.
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HEMP released video yesterday of its hemp mill up and running, which will be now beta-testing and analyzed for bugs. The company had a few communication issues, but the mill can now be turned on.
“Since the software communication issues we are experiencing now were expected, software programming, which is part of the debugging process, is solving those issues. We expect to finish beta testing and debugging in about a week or two,” said Schmitt.
Now that the hemp mill in Spring Hope, North Carolina is online and being debugged, Schmitt is in Brazil to start marketing and sales efforts in that country. He is scheduled to meet this week with several companies he previously did business with that are interested in Hemp, Inc.’s lost circulation materials (LCMs) and companies interested in using Hemp, Inc.’s fiber in the non-woven industry. Schmitt has also scheduled meetings with companies that he hopes to sell Hemp, Inc.’s CBDs to.
This news is related to HEMP’s Temafa decortication line in North Carolina. The automated Temafa decortication equipment is designed to separate the fiber from the core of the hemp plant through a process known as decortication. The Temafa decortication line of equipment, the only one of its kind in the United States (there are 2 in Canada, 2 in South Africa and 1 in the UK) enables HEMP to process raw hemp for American farmers into two valuable base products (fiber and hurd) that can both yield hundreds of products.
Back when they bought the decortication CEO Bruce Perlowin said “This purchase of decortication equipment was a critical step in order for Hemp, Inc. to help Americans transition from non-sustainable synthetic solutions to a hemp-based green solution. We are very excited at what we’ll be able to achieve once our manufacturing facility ramps its hemp production volume up over the next few years.”
Now that the mill is online, the company will begin processing and bagging the 18,000,000+ pounds of kenaf (a close relative of cotton) on-site and in storage after the beta testing and debugging are completed.
The company then expects to use the processed material to make their first two products (LCMs and Spill-Be-Gone). “Once we have processed all the kenaf on hand, we will switch over to processing industrial hemp just in time for North Carolina’s first hemp harvest later this year,” concluded Perlowin.
Hemp Inc (OTCMKTS:HEMP) is still pre-revenue carrying a $6.30 million market cap with 1.75 billion shares outstanding. News from this company should be taken with a grain of salt and needs to be substantiated. They have too often put out press after press with no real news. We advise investors proceeding with caution, but we will continue to watch this stock and offer updates as they come. For continuing coverage on shares of $HEMP stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!